3770:1-5-10
Financial administration.

(A)
Disbursement from the state lottery gross revenue fund. The state lottery gross
revenue fund shall be in the custody of the treasurer of state for the use of
the state lottery, and moneys shall be disbursed from it on the order of the
office of budget and management, pursuant to vouchers
or invoices signed by the director or the director's designee. The monies in
the state lottery gross revenue fund shall be appropriated in the following
order, and only for the following purposes:

(1)
Payment of prize awards to holders of
winning lottery tickets, including prizes awarded in any statewide joint
lottery games offered by the commission, provided the total prize disbursements
at the end of the fiscal year be of an amount equal to or greater than fifty
per cent of lottery tickets sales;

(2)
Payment of expenses incurred by the state
lottery in the operation and promotion of the state lottery, including but not
limited to, costs arising from contracts entered into by the director for
promotional, consulting or operational services, salaries of professional,
technical, and clerical assistants, and purchases or lease of lottery equipment
and materials, and any expenses incurred from the operation of any statewide
joint lottery games; and

(3)
Transfer into the lottery profits education fund of all net revenues remaining
in the state lottery fund, after the payments specified in paragraphs (A)(1)
and (A)(2) of this rule.

(B)
Other disbursements. Subject to any
applicable provisions of law, vouchers authorizing disbursements from any funds
in the custody of the treasurer of state for use by the state lottery shall
only be made upon the director's own express written authorization. The
director may designate individuals with authority to act as the director's
signator when the director is unavailable to provide such express written
authorization.

(C)
Director to
adopt procedures. The director shall adopt management orders, regulations or
directives providing detailed financial procedures and controls. These shall
include, without limitation, the manner in which expenses may be incurred and
the manner in which all financial transactions are to be effected and
recorded.

(1)
The auditor of state shall conduct annual
audits of all funds and such other audits as the auditor of state or general
assembly considers necessary. In addition, the director shall provide for and
conduct such audits or examinations of the operations of the state lottery, the
sales representatives and the agents as deemed necessary. The director and the
auditor of state may examine all records, files, and other documents of the
commission, and such records of agents and sales representatives as pertain to
their state lottery activities, for purposes of conducting authorized audits or
examinations.

(2)
The state lottery
commission shall establish an internal audit program before the beginning of
each fiscal year, subject to the approval of the auditor of state. At the end
of each fiscal year, the commission shall prepare and submit an annual report
to the auditor of state for the auditor of state's review and approval,
specifying the internal audit work completed by the end of that fiscal year and
reporting on compliance with the annual internal audit program. The form and
content of the report shall be prescribed by the auditor of state under
division (C) of section
117.20 of the Revised
Code.